Following are the factors affecting goodwill except:
A
Nature of business
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Efficiency of management
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Technical know how
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Location of the customers
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
Open in App
Solution
The correct options are C Technical know how D Location of the customers Goodwill is defined as "the present value of a firm's anticipated excess earnings". Thus goodwill exists only when the firm earns super profits. Any firm that earns normal profits or is incurring loss has no goodwill. The factors affecting the value of goodwill are: